French Democracy

In my elevator talk, I purposely avoided the "mixed economies" of Europe. These economies, and increasingly Canada and the United States, do not disprove my claims about the efficacy of classical liberalism.

Michael Barone points out in "Hard America, Soft America" that the softer (more Marxlike) side of the US economy relies on the prosperity of Hard America to keep it afloat. Western Europe built prosperity through freedom, innovation, and a work ethic that valued achievement. The mixed economies are consuming those gains at different rates in different countries.

France makes the news today with riots as a response to allow more liberalism in hiring and firing of young workers. Three points can be taken away:

1) The ability of an entitled class to politically protect itself should never be underestimated;

2) The US with a more liberal economy, has the best job market for college grads in five years, while the French have double-digit unemployment;

3) The Wall Street Journal points out the lack of enlightenment in the cradle of enlightenment. There is no voter recourse there as we know it. Politics is settled in the street (Robespierre would be proud). With strikes and marches instead of ballots and campaigns. I now read that there is a counter-protest. I agree with the counter, but question the tactics. I also think about Jose Bove, the folk hero who trashes the French McDonalds franchises. Nobody elected him, yet he tells his countrymen what to eat.

The mixed economies assume that the healthy, Mises-Hayekian economies can tolerate a little Marxism. For a time they can. I grew up hearing how swell Sweden was. Then France. And, for a generation or two, they are pretty swell places to call home -- not that either has the economy to welcome a skilled immigrant. But a friend who sold into those markets reminds me that life is pretty good for the ones who are there and have a position.

I prove my point by claiming that the more Marxism shown by a mixed economy, the worse shape it is in; the more Hayek, the better the economy. A trend here?

Elevator Talk Posted by jk at March 21, 2006 3:19 PM